Conflicts of Interest The financial principle “Conflicts of Interest” is a situation arising as a result of incompatibility of the desire of multiple parties; moreover it can be viewed from another angle of perspective as a position in which one derives individual benefits from the preceding acts agreed upon in the official capability. Agency problem being conflict of interest incorporated in any association whereby one partner is to act at the benefit or interest of another, which exists between stakeholder’s company and its management, even though it is to the mangers best of interest ,they intend on maximizing the wealth of the stakeholders by making proper decisions. One of the aims of many organizational conflicts are as a result of pressure between one’s motivation to act in on the basis of their own self gain and effort to authoritative rules of the institution to bring back the social esteem back such as morality and justice. The interaction between ethical motivation and self-interest is …show more content…
As much as company managers face a lot of burden in their works, it is better to get along with some of the issues that we might face along that might hinder the success capability. First, precise decision making which via voting to ascertain on matters pertaining the company, this is much better as an individual is not the one that makes decision on behalf of the whole organization, he voting are acquired after shares are divided such that each share is a one count vote. Secondly, there is unbiased structure as CEO’s and managers cannot make decision for their own self-gain but for the company, (Michael &Andrew, 2001). This means that the top level managers and the executives are not basically the owners as they are differentiated from those who own the company’s daily operation from stock